Human resource management (HRM) includes:
- Analysis and design of jobs
- Planning for the workforce
- Training and development
- Performance Management
- Compensation and benefits
- Legal questions
Small businesses, especially those that don’t have an HR department, can find it difficult to manage HRM. This responsibility could be assigned to the CEO or a limited number of HR professionals. Small business owners must understand the issues they face so that they can address HR problems as their company grows.
These are the top 10 human resource problems of today, along with quick solutions that you can implement in your company.
Table of Contents
1 BE COMPLIANT WITH CHANGING LAWS & REGULATIONS
Business owners find it difficult to keep up with the changing employment laws. Many business owners ignore employment laws because they believe that they don’t apply in their particular situations. This could lead to audits, lawsuits, and even the closure of your business.
Solution:
It doesn’t matter how big or small your company is, it’s vital to ensure compliance with all labor laws, whether they are federal, state, or local. There are regulations that govern everything, from hiring practices to wage payments to workplace safety. You can take a moment to review the Employment Law Guide of the corresponding government department.
2 MANAGE THE MANAGEMENT MODIFICATIONS
The business’s strategies, structure, and internal processes change as it grows. These changes can be difficult for some employees. During periods of change, many companies experience lower productivity and lower morale.
Solution:
The business owners need to communicate the benefits of the changes for all employees. It’s a good idea to hold regular staff meetings. Your team will be more likely to embrace the change if they understand the why, how, and when.
3 FOCUS ON LEADERSHIP DEVELOPMENT
Recent research revealed that more than a third (33%) of companies do an average job in implementing leadership development programs. According to the Brandon Hall Group’s State of Leadership Development Study, 36 percent of respondents admitted that their leadership development practices were below average.
Solution
Leadership development is essential for keeping your management team motivated and engaged. It also prepares them for greater responsibilities in the future. It should be part of the culture. Give them opportunities to make the most of their strengths every day. They will be motivated and able to improve their skills by achieving goals.
4 ONGOING WORKFORCE TRAINING & DEVELOPMENT
Another common HR issue is investing in the development and training of employees at lower levels. Many businesses struggle to find the funds. The most difficult workers are those on the front lines. They may not have the time or the resources to attend training courses.
Solution
Training and development do not have to cost a lot of money or time. Assist subordinate employees in their development as leaders and recruit managers. Online training could be offered so that people can learn at their own pace. You will build a productive, loyal workforce if you invest in it.
5 ADAPTING to Innovation
Technology is always changing. Companies must adapt quickly to stay ahead of their competition. Small business owners face the challenge of getting their employees to embrace innovation, and learn new technologies.
Solution:
Communication is essential. Make sure that your team is clear about the what, when, and how of any change. Establish clear goals and give employees the training necessary to be comfortable with initiatives.
6 MANAGE COMPENSATION
Many businesses are trying to figure out how to best structure employee compensation. Small businesses must compete with larger businesses, as well as corporations with large payroll budgets. You must also consider the costs of benefits, training, and taxes. These expenses can vary from 1.5 to 3x the salary of an employee.
Solution:
Although salary is an important factor, it’s not always the most important. A system that rewards employees for their outstanding performance are one way to compensate for a lower income. You can also offer incentives programs like profit sharing and bonuses that are both beneficial to the employee as well as the company.
7 UNDERSTANDING BENEFITS PACKAGES
Many small businesses have found the Affordable Care Act to be a problem in recent years. Companies must decide whether to pass rising healthcare costs onto their employees or to take a hit on their bottom lines. Understanding benefits packages is crucial as they can make a difference in the hiring process.
Solution
There are many options available for small businesses with less than 50 employees to offer healthcare benefits. You can purchase a plan through the Small Business Health Options Program ( SHOP) marketplace. This allows you to claim a tax credit that can offset your costs.
Don’t forget to mention benefits like:
- Unlimited vacation time
- Flex time
- Get free snacks
- Wellness programs
- Commuter benefits
These benefits can be affordable and offer additional perks. They’re very popular among today’s workforce.
8 HIRING TALENTED EMPLOYEES
It takes a lot of money and time to attract talent. Entrepreneurs must balance the need to keep a business afloat and the need to hire the right people at just the right time. It’s difficult to tell if a candidate is a good fit for your business until you’ve had them work for you for some time.
Solution
A staffing agency is a great way to find the right people to work for your company. You can hire temporary employees without any risk by using these temp-to-hire companies. They will save you time, money, frustration, and even help you find a future partner or executive.
9 RETENTION OF TALENTED EMPLOYEES
There is intense competition for talent. Startups and smaller companies have less money to invest in retirement plans and expensive insurance plans than their larger counterparts. Turnover is costly and can have a negative impact on business growth.
Solution:
Employees find onboarding highly beneficial. A structured onboarding process is 58 percent more likely to keep employees employed for at least three years. To learn more about your options, read our article 5 Employee onboarding Technology Solutions Your Business Needs to Use.
10 MAINTAIN WORKPLACE DIVERSITY
Multiple generations. Cultural and ethnic differences. These are just some of the many factors that make diversity in the workplace a constant challenge for small businesses. There is a real risk of harassment lawsuits against small businesses if they fail to protect their employees.
Solution:
A culture of respect and teamwork will help keep your workplace productive and positive. A diversity program must be implemented. The workplace must be managed by employers. It is important to establish standards and a system for accountability early.
EFFECTIVE HR MANAGEMENT IS ESSENTIAL
Employers are a company’s greatest asset. Small businesses that invest in their employees will experience faster growth and be more successful than their competitors.
Here are a few other reasons to be focused on HRM.
- Unique workplace culture
- It emphasizes the expectations and rules for the workplace.
- This tool helps everyone to understand the importance of workplace diversity
- Facilitates communication between employees and HR
- Training and development are more important
- Eliminates employee uncertainty
You need to be familiar with common HR issues in order to put in place the best policies and procedures. You will be able to stay ahead of your competition and achieve your business goals in this year and the future by understanding the complexities of employee benefits and employment laws.
